HQ 0955943 - Country of Origin determination for men's knit shirts - United States International Trade Commision Rulings

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HQ 955943

March 16, 1994

CLA-2 CO:R:C:T 955943 jb

CATEGORY: CLASSIFICATION

S. Richard Shostak, Esq.
Stein, Shostak, Shostak & O'Hara
3580 Wilshire Boulevard, Suite 1240
Los Angeles, CA. 90010-2597

RE: Country of Origin determination for men's knit shirts

Dear Mr. Shostak:

This letter is in response to your inquiry of February 17, 1994, on behalf of your client, Glint, Inc., requesting a country of origin determination for five styles of men's knit shirts. Samples of the completed shirts were submitted to this office for examination and will be returned under separate cover.

FACTS:

All of the garments at issue are composed of 65 percent polyester/35 percent cotton knit fabric of Taiwanese origin. In all cases the fabric will be cut into component pieces in Taiwan and then shipped to the People's Republic of China for assembly by sewing, ironing, folding and packing before exportation to the United States. The five samples submitted are described as follows:

1. Style number 42566

Style number 42566 features a partial frontal opening and button closure, a collar, a breast pocket with a single button closure, short sleeves and a straight hemmed bottom. Before assembly in China, the fabric is knit, dyed and cut into 13 components in Taiwan.

2. Style number 42550

Style number 42550 features a partial frontal opening and button closure, a collar, a breast patch pocket, short sleeves and a straight hemmed bottom. Before assembly in China, the fabric is knit, dyed and cut into 11 components in Taiwan.

3. Style number 42565

Style number 42565 features a partial frontal opening and button closure, a collar of ribbed knit fabric, a breast pocket, short sleeves with ribbed knit cuffs and a straight hemmed bottom. Before assembly in China, the fabric is knit, dyed and cut into 12 components in Taiwan.

4. Style number 42567

Style number 42567 features a partial frontal opening and button closure, a collar, a breast patch pocket with a single button closure, short sleeves and a straight hemmed bottom. Before assembly in China, the fabric is knit, dyed and cut into 11 components in Taiwan.

5. Style numbers 42568 and 42569

Style numbers 42568 and 42569 feature a partial frontal opening and button closure, a collar, a breast patch pocket with a single button closure, long sleeves with ribbed knit cuffs and a straight hemmed bottom. Before assembly in China, the fabric is knit, dyed and cut into 13 components in Taiwan.

ISSUE:

What is the country of origin of the merchandise at issue?

LAW AND ANALYSIS:

Section 12.130 of the Customs Regulations (19 CFR 12.130) sets forth the principles of country of origin for textiles and textile products subject to Section 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 1854).

Pursuant to 19 CFR 12.130(b), the standard of substantial transformation governs the country of origin determination where textiles and textile products are processed in more than one country. The country of origin of textile products is deemed to be that foreign territory or country where the article last underwent a substantial transformation. Substantial transformation is said to occur when the article has been transformed into a new and different article of commerce by means of substantial manufacturing or processing.

The factors to be applied in determining whether or not a manufacturing operation is substantial are set forth in 19 CFR 12.130(d). Section 12.130(e)(1) describes manufacturing or processing operations from which an article will usually be considered a product of the country in which those operations occurred.

Section 12.130(e)(1)(v) states that an article will be a product of a particular foreign country, when it has undergone prior to importation into the U.S. in that foreign country:

Substantial assembly by sewing and/or tailoring of all cut pieces of apparel articles which have been cut from fabric in another foreign territory or country, or insular possession, into a completed garment (e.g., the complete assembly of all cut pieces of suit-type jackets, suits and shirts).

We have previously held that cutting of fabric into pattern pieces constitutes a substantial transformation of the fabric, resulting in the apparel pieces becoming a product of the country where the fabric is cut (See HQ 955125, dated January 27, 1994, HQ 953697, dated July 26, 1993 and HQ 952531, dated November 25, 1992, addressing the country of origin determination for similar merchandise). Customs has also held that the mere assembly of goods entailing simple combining operations, trimming or joining together by sewing is not enough to substantially transform the components of an article into a new and different article of commerce. (See HQ 082747, dated February 23, 1989; HQ 951169, dated April 1, 1992; HQ 951437, dated July 17, 1992; HQ 734392, dated August 4, 1992; HQ 953489, dated June 14, 1993; HQ 953698, dated July 19, 1993).

The sewing operation performed in China involves the simple combining and assembly of component pieces to form the front and back panels, sleeves, collar and cuffs. It does not involve the complex sewing operation contemplated by Section 12.130(e)(1)(v), as for example, that found in the assembly and tailoring of all cut pieces of suit-type jackets, suits and shirts.

Accordingly, as the cutting in Taiwan changes the fabric into designated garment parts, this constitutes a substantial transformation of that fabric and confers country of origin.

HOLDING:

The country of origin of the submitted merchandise, referenced by style numbers 42566, 42550, 42565, 42567, 42568 and 42569, is Taiwan. It is at the cutting process, in Taiwan, that the textile products undergo a substantial transformation and are transformed into new and different articles of commerce.

The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in Section 177.9(b)(1), Customs Regulations (19 CFR 177.9(b)(1)). This
section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished this may affect the determination of country of origin. Accordingly, it is recommended that a new ruling request be submitted in accordance with Section 177.2, Customs Regulations (19 CFR 177.2).

Sincerely,

John Durant, Director

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